Rocket Lab (NASDAQ:RKLB – Get Free Report) and Heico (NYSE:HEI.A – Get Free Report) are both large-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.
Analyst Ratings
This is a summary of recent recommendations and price targets for Rocket Lab and Heico, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rocket Lab | 1 | 5 | 14 | 4 | 2.88 |
| Heico | 0 | 1 | 0 | 1 | 3.00 |
Rocket Lab presently has a consensus target price of $107.32, suggesting a potential upside of 70.48%. Given Rocket Lab’s higher probable upside, research analysts plainly believe Rocket Lab is more favorable than Heico.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocket Lab | $601.80 million | 62.59 | -$198.21 million | ($0.27) | -233.15 |
| Heico | $5.18 billion | 6.33 | $690.39 million | $6.01 | 39.01 |
Heico has higher revenue and earnings than Rocket Lab. Rocket Lab is trading at a lower price-to-earnings ratio than Heico, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Rocket Lab has a beta of 2.6, suggesting that its share price is 160% more volatile than the S&P 500. Comparatively, Heico has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Profitability
This table compares Rocket Lab and Heico’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocket Lab | -21.51% | -6.48% | -4.92% |
| Heico | 16.38% | 18.00% | 9.15% |
Institutional and Insider Ownership
71.8% of Rocket Lab shares are held by institutional investors. Comparatively, 59.0% of Heico shares are held by institutional investors. 8.4% of Rocket Lab shares are held by company insiders. Comparatively, 9.8% of Heico shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Heico beats Rocket Lab on 9 of the 15 factors compared between the two stocks.
About Rocket Lab
Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron, a reusable orbital-class small rocket; and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. Rocket Lab USA, Inc. was founded in 2006 and is headquartered in Long Beach, California.
About Heico
HEICO Corporation, through its subsidiaries, designs, manufactures, and sells aerospace, defense, and electronic related products and services in the United States and internationally. The company's Flight Support Group segment provides jet engine and aircraft component replacement parts; thermal insulation blankets and parts; renewable/reusable insulation systems; and specialty components. This segment also distributes hydraulic, pneumatic, structural, interconnect, mechanical, and electro-mechanical components for the commercial, regional, and general aviation markets; and offers repair and overhaul services for jet engine and aircraft component parts, avionics, instruments, composites, and flight surfaces of commercial aircraft, as well as for avionics and navigation systems, subcomponents, and other instruments utilized on military aircraft. Its Electronic Technologies Group segment provides electro-optical infrared simulation and test equipment; electro-optical laser products; electro-optical, microwave, and other power equipment; electromagnetic and radio interference shielding and suppression filters; high-speed interface products; high voltage interconnection devices; high voltage advanced power electronics; power conversion products; and underwater locator beacons and emergency locator transmission beacons. This segment also offers traveling wave tube amplifiers and microwave power modules; three-dimensional microelectronic and stacked memory products; harsh environment connectivity products and custom molded cable assemblies; radio frequency and microwave amplifiers, transmitters, and receivers; communications and electronic intercept receivers and tuners; self-sealing auxiliary fuel systems; active antenna systems; and nuclear radiation detectors. The company serves customers primarily in the aviation, defense, space, medical, telecommunications, and electronics industries. HEICO Corporation was founded in 1957 and is headquartered in Hollywood, Florida.
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